Axcelis Announces Financial Results For First Quarter 2015

May 5, 2015 at 4:01 PM EDT
Strong Increases in System Sales Driven by Continuing Purion Platform Gains

BEVERLY, Mass., May 5, 2015 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the first quarter ended March 31, 2015. Recent highlights include:

  • Revenues of $73.3 million, a 17.2% increase over the fourth quarter.
  • System sales of $42.5 million, a 42.3% increase over the fourth quarter.
  • Operating profit of $3.4 million, the second consecutive quarter of profitability.
  • Cash of $74.5 million, the highest level net of debt since 2002.
  • Increased gross margin to 31.9% from 30.1% in the fourth quarter.
  • Increased market share from 8.8% in 2013 to 12.3% in 2014, according to Gartner Dataquest.

The Company reported first quarter revenue of $73.3 million, compared to $62.5 million for the fourth quarter of 2014. Operating profit for the quarter was $3.4 million, compared to $0.4 million for the fourth quarter. Net income for the quarter was $1.9 million, or $0.02 per share. This compares to net income for the fourth quarter of 2014 of $0.2 million, or $0.00 per share. Cash was $74.5 million at March 31, 2015, an increase of $43.7 million that included proceeds from the sale of our headquarters and cash generated from operations. This compares with $30.8 million at December 31, 2014.

Chairman and CEO Mary Puma said, "During the first quarter execution across the business was solid. We made excellent progress toward our market share goals due to rising Purion platform sales, including both new penetrations and multiple follow on orders, and growth in the memory and non-leading edge foundry and logic segments. Looking ahead, our highly leveraged business model and differentiated product technology should enable us to deliver strong earnings and generate significant cash in 2015."

Business Outlook
For the second quarter ending June 30, 2015, Axcelis expects revenues to be $69-74 million. Gross margin in the second quarter is expected to be approximately 33%. Second quarter operating profit is forecasted to be $4-6 million with earnings of $0.02-0.04 per share. Cash in the second quarter is expected to be approximately $80 million.

First Quarter 2015 Conference Call
The Company will host a conference call today at 5:00 pm ET to discuss results for the first quarter 2015. The call will be available to interested listeners via an audio webcast that can be accessed through the Investors page of Axcelis' website at www.axcelis.com, or by dialing 1.866.588.8911 (1.707.294.1561 outside North America). Participants calling into the conference call will be requested to provide the company name, Axcelis Technologies, and pass code: 26415161. Webcast replays will be available for 30 days following the call.

Safe Harbor Statement
This press release and the conference call contain forward-looking statements under the SEC safe harbor provisions. These statements, which include our guidance for future financial performance, are based on management's current expectations and should be viewed with caution. They are subject to various risks and uncertainties, many of which are outside the control of the Company, including the timing of orders and shipments, the conversion of orders to revenue in any particular quarter, or at all, the continuing demand for semiconductor equipment, relative market growth, continuity of business relationships with and purchases by major customers, competitive pressure on sales and pricing, increases in material and other production costs that cannot be recouped in product pricing and global economic, political and financial conditions. These risks and other risk factors relating to Axcelis are described more fully in the most recent Form 10-K filed by Axcelis and in other documents filed from time to time with the Securities and Exchange Commission.

About Axcelis:
Axcelis (Nasdaq: ACLS), headquartered in Beverly, Mass., has been providing innovative, high-productivity solutions for the semiconductor industry for over 35 years. Axcelis is dedicated to developing enabling process applications through the design, manufacture and complete life cycle support of ion implantation systems, one of the most critical and enabling steps in the IC manufacturing process. Learn more about Axcelis at www.axcelis.com.

Company Contacts

Investor Relations:
Doug Lawson
978.787.9552

Editorial/Media:
Maureen Hart
978.787.4266

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Axcelis Technologies, Inc.

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)



Three months ended

March 31,

2015

2014

Revenue:




Product

$      67,530

$      55,015

Services

5,753

5,825

   Total revenue

73,283

60,840

Cost of revenue:




Product

45,185

33,802

Services

4,718

5,298

   Total cost of revenue

49,903

39,100






Gross profit

23,380

21,740






Operating expenses:




Research and development

8,199

9,257

Sales and marketing

5,628

5,476

General and administrative

6,101

6,481

Restructuring charges

10

200

   Total operating expenses

19,938

21,414






Income from operations

3,442

326






Other (expense) income:




Interest income

3

2

Interest expense

(1,043)

(251)

Other, net

(433)

292

   Total other (expense) income


(1,473)

43






Income before income taxes

1,969

369






Income tax provision


101

195






Net income  

$       1,868

$        174






Net income per share




   Basic


$        0.02

$        0.00

   Diluted


$        0.02

$        0.00






Shares used in computing net income per share:




   Basic weighted average common shares

113,152

110,649

   Diluted weighted average common shares

118,720

115,798






 

Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)


March 31,
2015

December 31,

2014

ASSETS



Cash and cash equivalents

$

74,548

$

30,753

Accounts receivable, net

42,753

42,794

Inventories, net

109,525

104,063

  Prepaid expenses and other assets

19,066

18,755

  Property, plant and equipment, net

30,198

30,464

  Restricted cash

67

825

     Total assets

$

276,157

$

227,654





LIABILITIES AND STOCKHOLDERS' EQUITY



Accounts payable

$

30,536

$

21,605

Accrued compensation

5,611

4,232

Warranty

2,163

1,527

Income taxes

322

196

Deferred revenue

8,656

7,231

Bank debt

—

14,530

Sale leaseback obligation

47,586

—

Other liabilities

10,014

9,981

     Total liabilities

104,888

59,302





Commitments and contingencies





Stockholders' equity:



Preferred stock, $0.001 par value, 30,000 shares authorized; none issued or outstanding

—

—

Common stock, $0.001 par value, 300,000 shares authorized; 113,633 shares issued and 113,513 shares outstanding at March 31, 2015; 112,849 shares issued and 112,729 shares outstanding at December 31, 2014

114

113

Additional paid-in capital

521,107

519,068

Treasury stock, at cost, 120 shares at March 31, 2015 and December 31, 2014

(1,218)

(1,218)

Accumulated deficit

(349,019)

(350,887)

Accumulated other comprehensive income

285

1,276

          Total stockholders' equity

171,269

168,352

          Total liabilities and stockholders' equity

$

276,157

$

227,654







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SOURCE Axcelis Technologies, Inc.